Paychex shares fell 12.3% for the week through midday Friday despite an earnings beat: fiscal Q1 2027 revenue rose 6% year over year, versus 17% growth in fiscal 2026, and its largest segment, management solutions, grew 4%.
TD Cowen analyst Bryan Bergin cut his price target on Paychex from $117 to $105 per share, a move the article says helped weigh on the stock. Reports also said Bergin and his firm lowered fiscal 2027 revenue estimates because of slower growth in management solutions, reducing their earnings assumption. Paychex left most guidance unchanged but raised its fiscal 2027 expectations for interest on client funds, citing the rising-rate environment.
